By NEWSCOUNT Desk
The African Export-Import Bank (Afreximbank) and the Africa Trading and Distribution Company (ATDC) have signed a US$500 million Global Credit facility agreement to support the trading, movement and distribution of commodities and products across African and global markets.
The facility will provide ATDC with financing for the purchase and aggregation of African goods, as well as logistics, transportation, warehousing and distribution costs throughout the trade cycle.
Repayment under the facility will be linked to proceeds from the goods financed, providing ATDC with funding to support its trading activities and movement of products from source markets to their destinations.
ATDC, a pan-African trading and distribution company, currently operates in Egypt, Nigeria, Malawi and Zimbabwe, with its activities focused on strengthening market access and connecting producers and suppliers with consumers and businesses.
The US$500 million facility is expected to enable the company to expand its trading operations and strengthen distribution networks linking African markets with one another and with international markets.
It will also support the aggregation of commodities and products from different African markets, making it easier to move larger volumes through established trade and distribution channels.
Executive Vice President, Intra-African Trade and Export Development at Afreximbank, Kanayo Awani, said the facility demonstrated the bank’s commitment to building the trade and distribution capacity required to support the African Continental Free Trade Area (AfCFTA).
Awani said the financing would help facilitate the distribution of Made-in-Africa products, strengthen regional value chains, expand market access for producers and support the growth of manufactured exports across the continent.
She said stronger distribution networks, backed by adequate trade financing, were necessary to enable African producers and manufacturers to reach markets within the continent and compete more effectively in international markets.
For ATDC, the facility is expected to provide additional working capital for its trading operations and improve the efficiency of the supply chains through which commodities and products are moved.
ATDC Chief Executive Officer, Stewart Makura, said the facility would help address some of the financing and supply-chain constraints affecting trade across African markets.
Makura said Africa’s trade potential required systems that could effectively connect producers, processors, manufacturers and markets, adding that the financing would enable ATDC to aggregate supplies, mobilise working capital and move goods more efficiently along different value chains.
He said the facility would also support value addition, import substitution and increased intra-African trade by strengthening the channels through which African goods reach consumers and businesses.
The financing will cover activities ranging from the purchase and aggregation of goods to transportation, warehousing and distribution, giving ATDC funding support through the different stages involved in getting commodities and products to market.
